apartment-depot-issued-500000-shares-of-no-par-value-stock-for-250000-what-does-

Question

Apartment Depot issued 500,000 shares of no par value stock for $250,000. What does this transaction imply about the company's equity and asset accounts?

Accepted Answer

The company's equity and assets both increase by $250,000.

Answer

The company's equity and assets both decrease by $250,000.

Answer

The company's assets increase by $250,000, but equity remains unchanged.

Answer

The company's equity increases by $250,000, but assets remain unchanged.

Apartment Depot issued 500,000 shares of no par value stock for \$250,000. What does this transaction imply about the company's equity and asset accounts?